Lending & collateral¶
Lending covers originating a loan, servicing it through its life, taking repayments, and managing the collateral behind it. A loan is an asset of the bank, money owed to it, so it is debit-normal in the ledger.
Where: the Lending & Collateral group, plus loan products under Products & Pricing.
Originating a loan¶
Lending → new loan is a wizard:
- Product & borrower: pick the loan product and the customer.
- Disbursement account & principal: the account to pay into (which sets the currency) and the amount.
- Terms: the product's defaults appear pre-filled and editable within allowed ranges (rate, tenor, fees).
- Review: with a repayment schedule preview.
Loan approval is maker-checker: origination captures the loan, and a checker with loan:approve
and a sufficient tier authorises it before funds move.
Credit assessment produces a score with reason codes and a decision record; an AI copilot can draft
a credit memo, but a human approves it per the mandate matrix.
Servicing a loan¶
The loan detail page is tabbed (Overview, Repayment, Collateral, Actions):
- Repayment shows the schedule and lets you take a repayment, with the outstanding balance in view. Repayments are allocated across principal, interest, fees and tax by the product's rules.
- Actions are status-gated (disabled while a posting is in flight): capitalisation, rate reset, top-up, restructuring, write-off.
- Provisioning is summarised from a server-side aggregate.
Interest accrues daily via end-of-day on an effective-interest basis. Arrears ageing, dunning and promise-to-pay are tracked as a loan falls behind.
Collateral¶
Lending → Collateral registers what secures a loan. Registration uses a type-aware form: property (address, size), vehicle (registration, model) or cash (an account). A haircut discounts the collateral's value.
Pledge a registered item to a loan from the pledge dialog, which shows the loan summary and the loan-to-value (LTV) impact before you confirm.
Provisioning & impairment¶
Cortex stages loans under IFRS 9 (stages 1 to 3) and computes an expected credit loss (ECL = PD × LGD × EAD) for provisioning. Non-performing loans, restructuring and forbearance, write-off and later recovery are all modelled.
Key terms¶
- Amortisation schedule
- The planned series of repayments splitting each instalment into principal and interest.
- EIR
- Effective interest rate, the basis on which interest is accrued.
- LTV / haircut
- Loan-to-value is the loan against the collateral's value; the haircut is the discount applied to that value for prudence.
- IFRS 9 staging / ECL
- The impairment framework: which stage a loan is in, and the expected credit loss provided for it.
Roles that do this work¶
| Task | Permission | Typical role |
|---|---|---|
| Read a loan | loan:read |
Loan Officer |
| Originate | loan:originate |
Loan Officer |
| Approve (four eyes, tier) | loan:approve |
Credit Approver |
| Take a repayment | loan:repay |
Loan Officer, CSR |
| Write off (four eyes) | loan:writeoff |
Credit Approver, Manager |
| Register / pledge collateral | collateral:manage |
Loan Officer |